1. BASIC CONCEPTS of MANAGEMENT 2. Introduction Management is an important element in every organization.

It is the element that coordinates currents organizational activities and plans for the future. The management adapts the organization to its environment and shapes the organization to make it more suitable to the organization.

3. Definition Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way. F.W.Taylor Management as a process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objective by the use of people and resources. George R. Terry

4. In this definition, Planning means Plan in advance. Organizing means coordination between human resources and material resources. Actuating means motivation and giving direction to subordinate. Controlling means to ensure about implementation of plan without deviation. Thus this definition tells that management is act of achieving the organization objectives.

5. MANAGEMENT FUNCTIONS OR THE PROCESS OF MANAGEMENT Planning, Organizing, Leading & Controlling (Newman & Summer) Planning, Organizing, Commanding, Coordinating and Controlling (Henri Fayol) POSDCORB: Planning, Organizing, Staf fing, Directing, Coordinating, Reporting & Budgeting (Luther Gulick) Decision Making, Organizing, Staffing, Planning, Controlling, Communicating & Directing (Warren Haynes & Joseph Massie) Planning, Organizing, staffing, directing & Controlling (Koontz ODonnell)

6. Functions of Management Planning:- It is a process of deciding the business objectives and charting out the plan/ method for achieving the same. This includes determination of what is to be done, how, and where it is to be done, who will do it and how result are to be evaluated. This function expected to be carried out throughout the organization. It should be performed by the manager at all levels.

7. Organizing According to Allen, the organizing refers to the structured which results from identifying and grouping the work, defining and delegating responsibility and authority and establishing relationships. To organize a business is to provide it with everything useful to its functioning i.e. personnel, raw materials, machineries, capital etc. Once objectives are established, manager has to develop plan to achieve them with help of human resources as well as material resources.

8. Directing Directing involves communication, leadership and motivation. Communication is the process of passing the information and understanding it from one person to other person. Leadership is the function whereby the person or manager guides and influences the work of his subordinates. Motivation is to motivate the employee to give their best to the organization.

9. Controlling The controlling involves- 1. Establishing standards of performance. 2. Measuring current performance and comparing it against the established standard. 3. Taking corrective action that does not meet the standard. Control compels the events to confirm to plans.

10. Innovation and Representation These are also two important additional managerial functions. Innovation means crating new ideas which may either result in the development of new products or finding new uses for older ones. It is necessary to grow better. The manger has to represent himself for the organization. A manger must win support effectively from different groups (either internal or external).

11. IMPORTANCE OF MANGEMENT Management is critical element in the critical growth of the country. Management is essential in all organized effort, be it business activity or any other activity. Management is the dynamic, life giving element in every organization.

12. LEVELS OF MANAGEMENT LOWER LEVEL (FIRST LINE): FOREMEN & WHITE COLLAR SUPERVISOR MIDDLE MANAGEMENT: SALES MANAGERS, PERSONNEL MANAGERS, OTHER

DEPARTMENTAL HEADS TOP MANAGEMENT: COMPANY PRESIDENTS, EXECUTIVES, VICE PRESIDENTS 13. MANAGERIAL SKILLS Conceptual Skills Human Relation Skill Technical Skills Top Management Middle Management Supervisory Level 14. Evolution of Management Thought The need to study management arose with the industrial revolution in Europe (more specifically, England). The industrial revolution and the systematic study of management are the result of a remarkable confluence of ideas and events. Management and organizations are products of their historical and social times and places. 15. SCIENTIFIC MANAGEMENT THEORY Frederick W. Taylor, Henry L. Gantt, and Frank and Lillian Gilbreth devised the body of principles known as scientific management theory. Taylor based his management system on production-line time studies. Using time study as his base, he broke each job down into its components and designed the quickest and best methods of performing each component. 16. He also encouraged employers to pay more productive workers at a higher rate than others, using a "scientifically correct" rate that would benefit both company and worker. This system is called Differential Rate System Gantt originated a charting system for production scheduling. 17. Every worker's progress was rated publicly and recorded on individual bar charts,--in black on days the worker made the standard, in red when he or she fell below it. Going beyond this. Frank B. and Lillian M. Gilbreth collaborated on fatigue and motion studies and focused on ways of promoting the individual worker's welfare. To them, the ultimate aim of scientific management was to help workers reach their full potential as human beings. 18. CONTRIBUTIONS OF SCIENTIFIC MANAGEMENT THEORY The modem assembly line pours out finished products faster than Taylor could ever have imagined. This production "miracle" is the gift of

scientific management. In addition, its efficiency techniques have been applied to many tasks in non-industrial organizations, ranging from fastfood service to the training of surgeons. 19. LIMITATIONS OF SCIENTIFIC MANAGEMENT THEORY Taylor's system clearly meant that time was of the essence. His critics objected to the "speed up" conditions that placed undue pressures on employees to perform at faster and faster levels. The emphasis on productivityand, by extension, profitabilityled some managers to exploit both workers and customers. This condition created mistrust / suspicious relationship between labour and supervisor or management. 20. CLASSICAL ORGANIZATION THEORY Classical organization theory concerned about the need to find guidelines for managing complex organizations such as factories. Henri Fayol is the founder of the classical management theory. Fayol believed that sound management practice falls into certain patters that can be identified and analyzed. Fayol was interested in the Total Organization and focused on management, which he felt had been the most neglected of business operations. 21. Fayols 14 Principles of Management 1. Division of Labor 2. Authorit y 3. Discipline 4. Unity of Command 5. Unity of Direction 6. Remuneration 7.Subordination of Individual Interest to the Common Good 8. Centralization 9. The Hierarchy 10.Order 11. Equity 12. Stability of Staff 13. Initiative 14. Espirit de Corps 22. Contribution of Classical Management Theory Before Fayol, it was generally believed that "managers are born, not made." Fayol however, said that management was a skill like any other--one that could be taught once its underlying principles were understood. It identified key management processes, functions and skills. It focused attention on management as a valid subject of scientific study. It lead foundation for latter developments in management theory.

23. Limitations of Classical Theory This theory is more applicable for stable and simple organizations than todays complex and dynamic organizations. This theory treats employees as a elements rather than resources. The procedure governed by this theory may not be applicable in certain situation.

24. Behavioural Management Theory Neo Classical Theory This theory puts more emphasis on individuals attitudes, behaviours and on the group processes. In this approach of management human factor remain central focus. This approach can be studied into two phases a. Human Relation Movement b. Behavioural Science Approach Major contributors to this approach were Elton Mayo, Abraham Maslow and Dugulas Mcgregor

25. Human Relation Movement Human relations is frequently used as a general term to describe the ways in which managers interact with their employees. When "employee management" stimulates more and better work, the organization has effective human relations; when morale and efficiency deteriorate, its human relations are said to be ineffective. The human relations movement arose from early attempts to systematically discover the social and psychological factors that would create effective human relations. This approach aims at providing high degree of satisfaction and motivation through improved working conditions, style of supervision and sense of security.

26. Contribution of Human Relation Movement This movement thrown light on, an employee doesnt work always for money only. Non financial rewards also significantly affects the beheviour of the employee. There is no correlation between improved working conditions and high production. The informal group and not the individual is the dominant unit of analysis in organizations.

27. Limitation of the Human Relations Movement This approach overemphasizes on symbolic rewards and underplays the role of material rewards. This approach gives more importance to informal groups by

describing them as a major sources of satisfaction for individual workers. This approach is based on the assumption that satisfied workers are more productive workers. Attempts to increase output by improving working conditions and the human relation skills of manager. 28. Behaviourial Science Approach This approach is an improved version of the human relations approach to management. Douglas Mcgregor, Abraham Maslow, Kurt Lewin, Chester Barnard, Merry Follett etc. are some of the foremost behaviourial scientists who made significant contributions to the development of the behaviourial approach to the management. This approach recognizes the practical and situational constraints on human rationality for making optimal decisions. 29. Contd To behevioural scientists, the realistic model of human motivation is complex man. It suggest that different people react differently to same situation or react same way to different situations. The organization considered as a groups of individuals with certain goals. It recognizes that conflict is inevitable and even sometimes desirable and should be faced with understanding and determination. 30. Contribution of Behavioural Management Theory It provides important insights into motivation, leadership, group dynamics and other interpersonal process in organizations. This theory challenged the view that employees are tools instead employees are valuable resources. Focused managerial attention on employee related process. 31. Limitations of Behavioural Management Theory Many bevioural concept couldnt be applied in organizational processes because of manager reluctance. The complex human nature cannt be predicted. The findings of behviuoral science often could not be communicated to the practicing manager in an understandable manner. 32. Modern Approaches Quantitative Approach This approach has been called as the management science approach. The focus of the quantitative approach is on decision making to provide quantitative tools and

techniques for making objectively rational decisions. It means as ability or willingness to follow a reasoned, unemotional, orderly and scientific approach in visualizing the totality of the decision environment. 33. Contd This approach gained movement during World War II when UK and USA trying to seek solutions for a number of new complex problems occurred during the war. The group of scientists engaged for this purpose were known as Operations Research (OR) team. The management approach gained popularity through two postwar phenomena. The development of high-speed computers and of communications among computers provided the means for tackling complex and large-scale organizational problems. 34. Contributions of Quantitative Management Theory The keynote of this approach is precision and perfection which is achieved by expressing relationships and facts in quantitative terms. It is widely used in planning and control activities where problems can be precisely identified and defined in quantitative terms. It has led to increasing use of information technology, electronic data processing system and other sophisticated quantitative devices for making decisions. 35. Limitations of Quantitative Management Theory This approach has very limited application because of only attention towards problem solving and decision-making. It fails to explain or predict about behaviour of the people of the organization. Management may able to achieve mathematical sophistication at the expense of other important managerial skills. 36. System Approach This approach is aimed at identifying the nature of relationship among various components of the organization which is considered as larger system. Chester Barnard, George Homans, Herbert Simon etc. are the contributors in System Approach. This approach gives managers a way of looking at the organization as a whole and as a part of the larger, external environment.

37. Contd Systems theory tells us that the activity of any segment of an organization affects, in varying degrees, the activity of every other segment. It calls attention to the dynamic and interrelated nature of organizations and the management task. It provides a framework within which we can plan actions and anticipate both immediate and far-reaching consequences while allowing us to understand unanticipated consequences as they develop.

38. Key concepts of System Approach A system is a set of interdependent parts An organization is a system composed of four interdependent parts i.e. task, structure, people and technology. Central to the System Approach is the concept of holism Means no part of the system can be accurately analyzed and understood apart from whole system. Conversely the whole system cannot be accurately perceived without understanding all its parts.

39. Contd Synergy It means that as separate departments within an organization cooperate and interact, they become more productive than if each were to act in isolation. A system can be either open or closed An open system interact with its environment. A closed system is independent of the environment. Every system has a boundary - Each system has a boundary that separates it from its environment. In a closed system, the system boundary is rigid; in an open system, the boundary is more flexible.

40. Contd Flow - A system has flows of information, materials, and energy (including human energy). These enter the system from the environment as inputs (raw materials, for example), undergo transformation processes within the system (operations that alter them), and exit the system as outputs (goods and services). Feedback - Feedback is the key to system controls. As operations of the system proceed, information is fed back to the appropriate people, and perhaps to a computer, so that the work can be assessed and, if necessary, corrected.

41. Contribution of System Approach System theory calls attention to the dynamic and interrelated nature of organizations and the management

task. Thus, it provides a framework within which we can plan actions and anticipate both immediate and far-reaching consequences while allowing us to understand unanticipated consequences as they develop. With a systems perspective, general managers can more easily maintain a balance between the needs of the various parts of the enterprise and the needs and goals the whole firm. 42. Limitations of System Approach According to some experts, system approach is purely theoretical, conceptual and abstract. It can cant be applied successfully to practical situation. The system Approach neither offers any tools or technique for analysis nor it recognizes the differences which exists between the systems. 43. Contingency Approach According to the contingency approach the manager's task is to Identify which technique will, in a particular situation, under particular circumstances, and at particular time , best contribute to the attainment of management goals. Methods and techniques which are highly effective in one situation may not work in other situations. Results differs with situational difference. 44. Contribution of Contingency Approach Contingency views are applicable in designing organizational structure, in deciding the degree of centralization and decentralization, in planning information decision system, in motivational and leadership approaches, in establishing communication and control systems, in resolving conflicts and managing change, in employee development and training programmes etc. 45. Limitation of Contingency Approach It compromise between system approach and situational factors. It is totally practical approach without support of theoretical and conceptual frame work. Some time manager finds difficulties in analyzing the situation and discovering appropriate management technique in absence of proper research and understanding behaviour of the situation.

. CLASSIFICATION OF MANAGEMENT FUNCTIONS Henry Fayol, the pioneer of management process approach gave Planning Organizing Commanding Co-coordinating and Controlling as functions of management.

9. Luther Gullick used the word POSDCORB to describe functions such as Planning (P) Organizing (O), Staffing (S), directing (D) , controlling (CO), reporting and budgeting (B), Koontz and O Donnel adopted managerial functions as planning, organizing, staffing, directing and controlling. Earnest dale has included innovation and representation to the earlier mentioned functions

10. 1. Planning 2. Organizing 3. Staffing 4. Directing (a) Leadership (b) Communication (C) Motivation (d) Supervision 5. Co-coordinating 6. Controlling

11. PLANNING Planning is a basic managerial function,. Planning helps in defining the course of action to be followed for achieving various organizational objectives. It is a decision in advance, what to do, when to do, how to do and who will do a particular task. Planning is a process which involves thinking before doing.

12. According to Terry, Planning is the selecting and relating of facts and the making and using assumptions regarding the future in the visualization and formulation of proposed activities believed necessary to achieve desired results.

13. Planning is a process of looking ahead. The primary object of planning is to achieve better results. It involves the selection of organizational objectives and developing polices procedures, programmes, budgets and strategies. Planning is a continuous process that takes place at all levels of management.

14. The process of planning involves Gathering Information Laying down objectives Developing Planning premises Examining alternative courses of action Evaluation of action patterns Reviewing limitations Implementation of planning

15. ORGANISZING Every business enterprises needs the services of a number of persons to look after its different aspects. The management sets up the objectives or goals to be achieved by its personnel. The energy of every individual is channelized to achieve the enterprise objectives. The function of organizing is to arrange, guide coordinating, direct and control the activities of other factors of production, Viz, men, material, money and machines so as to accomplish the objectives of the enterprise,.

16. Louis A. Allen describes organization as the process of identifying and grouping work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives

17. PROCESS OF ORGANISATION INVOLVES To identifying the work to be performed To classify or group the work To assign these groups of activities or work to individuals To delegate authority and fix responsibility To Co-ordinate these authority-responsibility relationships of various activities.

18. Though they are many types of organizations but generally three types of organizations are in vogue: 1.Line Organization 2.Functional Organization and 3.Line and staff organization.

19. STAFFING The function involves manning the positions created by organization process. It is concerned with human resources of an organization. In the words of Koontz and O Donnel, Staffing is filling, keeping filled positions in the organization structure through defining workforce requirements, appraising, selecting compensating training

20. STAFFING CONSISTING OF: Manpower planning i.e.., assessing manpower requirements in terms of quantity and quality Recruitment, selection and training Placement of man power Development, promotion, transfer and appraisal Determination of employee remuneration.

21. DIRECTING Directing is concerned with carrying out the desired plans. It initiates organized and planned action and ensures effective performance by subordinates towards the accomplishment of group activities. Direction is called management in action. In other words of George R. Terry, Direction is moving to action and supplying simulative power to the group after planning.

22. MAIN ACTIVITES INVOLVED IN DIRECTING: Leadership Communication Motivation and Supervision

23. LEADERSHIP A manager has to issue orders and instructions and guide and counsel his subordinated in their work with a view to improve their perform mace and achieve enterprise objectives. Leadership is the ability to build up confidence and zeal among people and to create an urge in them, to be led. To be successful leader, a manager must possess the qualities of foresight, drive initiative, self confidence and personal integrity.

24. COMMUNICATION Communication constitutes a very important function of management. It is said to be the number one problem of management today. It is an established fact that managers spend 75 to 90 per cent of their working time in communicating with others Thus, communicating means sharing of ideas in common. The essence of communicating is getting the receiver and they sender turned together for a particular message. It refers to the exchange of ideas feelings, emotions and knowledge and information between two or more persons. Nothing happens in management till communication takes place.

25. MOTIVATION The term motivation is derived from the word motive which means a need, or an emotion that prompts an individual into action motivation is the psychological process of creating urge on the

subordinates to do certain things or behave in the desire manner. It is a very important function of management. The importance of motivation can be realized from the fact that performance of a worker depends upon his ability and the motivation. 26. SUPERVISION Supervision is another element of directing function of management. After issuing instructions, the manager or the supervisor of management has to see that all given instructions are carried out. This is the aim of supervision. Supervision refers to the job of overseeing subordinates at work to ensure maximum utilization of resources to get the required and directed work done and to correct the subordinates whenever they go wrong. 27. CO-ORDINATION Coordination is one of the most important functions of management. It is essential to channelise the activities of various individuals in the organization for the achievement of common goals. Every department or section is given a target to be achieved and they should concentrate only on their work and should not bother about the work of other organs. 28. Coordination creates a team spirit and helps in achieving goals through collective efforts. It is the orderly arrangement of group effort to provide unity of action in the pursuit of common objectives. 29. CO-ORDIANTION AND CO-OPEARATION Co-ordination is much wider term then co-operation. Co-operation indicates the willingness of individuals to help each other. It is and attitude of a group of people and is largely the result of voluntary action. Co-ordination, on the other hand is a conscious managerial effort which is the result of a deliberate action. 30. CONTROLLING Controlling can be defined as determining what is being accomplished that is evaluating the performance, if necessary, applying corrective measures so that the performances take place according to plans. Control is essential for achieving objectives of an enterprise. The planning of various activities does not ensure automatic

implementation of policies. Control is the process which enables management to get its policies implemented and take corrective actions if performance is not according to the pre-determined standards.

PRINCIPLES OF MANAGEMENT
1. DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization. 2. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility. 3. DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort. 4. UNITY OF COMMAND: Workers should receive orders from only one manager. 5. UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction. 6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole. 7. REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a workers rate of pay. 8. CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working. 9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful. 10. ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible. 11. EQUITY: All employees should be treated as equally as possible. 12. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject

rates are usually associated with hiring new workers. 13. INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction. 14. ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees.